Truist Financial Sells $5.5 Billion in Auto Loans

Truist Financial agreed to sell $5.5 billion of auto loans to exit the near-prime auto lending business. The transaction involves substantially all assets of the bank's Regional Acceptance auto-finance unit and is expected to generate net proceeds of $5.2 billion, along with a $535 million loan-loss-reserve recapture.

Truist intends to use the proceeds to repay wholesale borrowings as part of a broader strategic review. This move follows the bank's exit from marine and recreational-vehicle lending earlier this year.

The sale is projected to reduce net charge-offs by approximately 10 basis points annually and decrease non-performing loans by more than 10 basis points as of June 30. The transaction is scheduled to close by the end of the year.